🚨 Why Capping Credit Card Interest Rates Could Backfire On The Trump Admin🚨
Right now, credit card debt in the U.S. tops $1.2 trillion, and average interest rates sit around 23%. Some politicians like Bernie Sanders want to cap those rates at 10% to make borrowing cheaper and ease the burden on families. It sounds helpful, but many economists and banking experts warn that caps could cause more harm than good. Here’s why, explained simply.
1. Banks Might Stop Lending to Riskier People
Credit cards work on risk-based pricing: people with spotty credit or who carry balances pay higher rates because they’re more likely to miss payments. If the government forces rates down to 10%, banks can’t make money on those riskier customers. So they often respond by:
- Rejecting more applications
- Closing existing accounts
- Cutting credit limits sharply
Recent industry estimates say a 10% cap could mean 47 million people with lower credit scores lose access to regular credit cards. Even some people with good credit could see their limits slashed. That hits hardest the folks who need credit cards most for emergencies, groceries, or building credit.
2. People Turn to Much Worse Options
When mainstream credit disappears, many borrowers go to payday loans, car-title loans, or pawn shops. Those can charge 300–400% interest, which is way more than any credit card. Studies show that when states or countries cap rates, people often end up paying higher total costs and getting stuck in worse debt.
3. Fees Go Up and Rewards Disappear
To make up for lost interest income, banks usually raise other charges, including annual fees, late fees, and cash-advance fees. They also cut or eliminate rewards programs like cash back, travel points, and airline miles, which millions of people enjoy. Even if you pay your card off every month, you’d lose those perks that make using a credit card feel rewarding.
4. The Economy Could Feel It
Americans spend more than $3.6 trillion a year on credit cards. That spending supports stores, restaurants, and small businesses. If millions of people suddenly have less credit available, people spend less. Consumer spending drives about 70% of the U.S. economy, so big cuts in credit could slow growth and hurt jobs.
High credit card rates are painful, no question. But putting a hard cap on them is like putting a price ceiling on rent, and it can create shortages. Instead of cheaper credit for everyone, we could end up with less credit for the people who need it most, higher fees for everyone, and more people stuck in predatory loans.
Smarter alternative fixes include teaching people how to manage money better, offering more low-cost debt-consolidation options, or encouraging competition so banks have to keep rates reasonable without government force.
Today we remember one of the worst days ever imaginable.
Holocaust Remembrance Day reminds us that evil does exist in the world—and that silence allows it to grow.
We must continue to fight antisemitism today and every day.
Never again is now.
2025 was one helluva year! Beyond grateful to all of you who tuned into the podcast and took us to #1 globally!
Can’t wait to get back on air in 2026, as I plan to break another explosive story.
Because I’m always one step ahead of my haters—whom I am grateful to as well! 😂
I was clear, bitch . I said that Charlie and I never used the same security people. So your point that I was being a hypocrite by critiquing their actions that day is complete and utter trash.
In fact, I regularly critiqued Charlie on his security team. And I’m sure I could dig up a text message or two to that effect.
Dogs don’t bark at parked cars.
There’s a reason some of the world’s richest and most powerful people are trying to get me out of Congress.
I’m just one of 435 votes but I bring transparency to an otherwise dark and corrupted institution of government.
Señor Trump, jamás Colombia ha sido grosera con EEUU, al contrario, ha querido mucho su cultura.
Pero usted es grosero e ignorante con Colombia. Léase, como si lo hizo, su encargado de negocios en Colombia, Cien Años de Soledad, y le aseguró que algo aprenderá de la soledad.
Yo no hago bussines , como usted, yo soy socialista, creo en la ayuda y el bien común y en los bienes comunes de la humanidad, el mayor de todos: la vida, puesta en peligro por su petróleo.
Si yo no soy negociante, pues mucho menos narcotraficante, en mi corazón no hay codicias.
Nunca pude entenderme con la codicia. Un mafioso es un ser humano que condensa lo mejor del capitalismo: la codicia, y yo soy lo contrario, un amante de la vida y por tanto un guerrero milenario de la vida. La codicia nos huye, porque la vida es más poderosa
Don’t worry about the gag order in the Charlie Kirk case.
I plan to violate it on the world’s behalf.
The things I’ve discovered this past week are enough to burn the house down.
Yes, Charlie was betrayed. By everyone.